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Ilya [14]
3 years ago
8

Crowding out occurs because the government increases the demand for loanable funds, drives up interest rates, and causes: Select

one: a. saving to rise. b. saving to fall. c. consumption and investment to rise. d. consumption and investment to fall.
Social Studies
1 answer:
klemol [59]3 years ago
5 0

Crowding out occurs because the government increases the demand for loanable funds, drives up interest rates, and causes Consumption and investment to fall.

<h3>Option (D) is correct</h3>

<u>Explanation:</u>

When the government increases its spending this leads to an improve in the interest rates, Crowding out means when the improve in the rate of interest leads to lesser investment in an economy. The fall in investment immediately due to increase in rate of interest is called crowding out effect.

So crowding out will result in consumption and investment to fall. When interest rate increases the loans become more expensive. This leads to less borrowing in an economy that simultaneously causes investment to fall. People will have less money to invest.

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3 years ago
Economic growth will A. not be sustained if developing countries stop accumulating capital because of diminishing returns to cap
Alex17521 [72]

Answer:

Option (B) is correct.

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Hence, this change in the production level slows down the economic growth or even stop the economic growth of a nation.

3 0
3 years ago
Con los grupos de ideas, escribe un texto de cinco párrafos. Recuerda usar conectores como "asimismo", "también", "es decir", "p
Kobotan [32]

La respuesta correcta para esta pregunta abierta es la siguiente.

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Como tampoco mencionas a qué país te refieres, vamos a escribir sobre este tema en términos generales.

<em>Título:</em>

"Diversidad, la característica principal de nuestro ecosistema."

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2.- Esta diversidad climática en flora y fauna es un verdadero espectáculo. sin embargo, la hemos descuidado mucho y hay algunas zonas en riesgo.

3.- El gobierno es responsable de esto, pero también nosotros , os ciudadanos, ya que no hemos aprendido a darle el valor que le corresponde a la naturaleza. Pareciera como si no nos afectara y somos indiferentes.

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5.- Asimismo, los medios masivos de comunicación deberían participar en campañas para concientizar a las personas sobre la importancia de cuidar nuestra diversidad.

7 0
3 years ago
how do you think things would be different in our country if Presidents were elected for life? Write a 3 paragraph essay detaili
Oksana_A [137]

Answer:

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Explanation:

8 0
3 years ago
Read 2 more answers
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